How do we get to 3% of GDP...
Idea from the previous UK Chancellor of the Exchequer (Minister of Finance).
5:15PM
Jeremy Hunt: Slash welfare to hit US defence spending levels
Jeremy Hunt has said that the UK could increase defence spending to US levels if only welfare spending was scaled back to where it was in 2019, before the Covid pandemic.
The former foreign secretary and chancellor zoomed in on the country’s ballooning welfare budget in an intervention in the House of Commons amid debate about how to fund military spending increases.
Mr Hunt said to David Lammy, the Foreign Secretary:
Mr Lammy said he thought Rachel Reeves, the Chancellor, will look at the idea “very closely”. Reforms to the welfare budget are due to be unveiled next month.
What is interesting about that exchange is that the idea was not rejected out of hand by the Labour government just because it was proposed by a Tory.
The other interesting bit is that money that the government is extracting from the economy to be pumped back as welfare payments could just as easily be pumped back into the economy as jobs for soldiers, active and reserve, jobs in MOD procurement and jobs in the arms business building weapons, trucks, comms, UAVs, missiles and ammunition etc - along with beans, blankets and bandages.